Speaking on Leute Heute, the entrepreneur said he was looking forward to a "family Christmas", where they will "regroup" over turkey and champagne.
The Duke and Duchess of Cambridge last spent Christmas with the Middletons' home in Berkshire – and not the Queen – back in 2016.
Kate's sister, Pippa, gave birth to her first child, Arthur, in October and it will also be Prince Louis' first Christmas.
James told the German channel: "I welcome people into our family home, I want it to feel like it's their home.
"There'll be turkey, champagne and some wine. For me it's all about family. It's one where we can all regroup."
Spending the holidays with the Queen is expected by all Royals, and last year all members attended, including Harry's then-fiancé, Meghan.
However, in 2016, Williams and Kate broke Royal tradition by choosing to spend the festive period at the Middleton's family home in Berkshire.
And it looks like they might do again as James said in his interview: "Christmas is all about family and gives the Middletons a chance to 'regroup'".
Talking about the celebrations at their £4.7 million mansion in Bucklebury, James said: 'I welcome people into our family home. I want it to feel like it's their home."
Kate and Wills first broke with tradition two years ago when they opted to spend Christmas Day with her parents at their £4.7million home.
But Meghan Markle will be spending her second Christmas at Sandringham – although her first as a fully fledged member of The Firm.
It is believed she will be joined by her mum, Doria Ragland, and the pair will have to get used to some unusual royal traditions.
If Ms Ragland were to attend, this would break royal precedent as no non-royal relatives have ever been invited to spend Christmas at Sandringham, not even the Middletons.
Royal expert and editor of Majesty magazine Ingrid Seward claims that each member of the Royal Family, including Meghan's hubby Harry, is weighed before and after tucking into their turkey dinner on Christmas Day,
Ingrid told Grazia that The Queen asks each of her guests to "weigh themselves" using a pair of antique scales when they first arrive at the Sandringham estate in Norfolk for the Christmas period.
But this is all to make sure guests are having a great time – and they're weighed to make sure they're being "well fed".
The tradition dates back to King Edward VII's reign in the early 1900s – and applies to all members of the royal clan.
As the festivities undeniably revolve around eating, the Royal Family first enjoy a turkey dinner with all the trimmings before indulging themselves in an afternoon tea complete with a "gargantuan iced cake".
Prince Charles and his wife Camilla, Duchess of Cornwall will also join in the festivities.
And newlywed Jack Brooksbank is also likely to pay the Queen a visit after his marriage to Princess Eugenie last month.
A bizzare royal traditions means that Meghan and her mother will be weighed by the Queen after their Christmas lunch at Sandringham.
The Duke and Duchess of Sussex joined William and Kate at a top secret dinner date with celebrities the other day.
And this is the one thing that Kate Middleton always makes sure to keep in her car.
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